Why quit smoking - decrease in term insurance premium and other benefits

A tiny cigarette might not cost you a lot. However, it can have a tremendous amount of impact on your life. It can not only put your life at risk but also the life of your loved ones. While smoking a cigarette can affect your lungs, you might put your family’s financial well-being at stake if they depend on you.

Since smoking increases your chances of death, you should purchase a term insurance policy to protect your family members financially in your absence. Term insurance is a protection plan that can offer financial security to your loved ones after your demise. Let’s understand what term insurance is in detail:

The primary aim of a term plan is family protection. Since your family might not be able to function financially in your absence, a term plan can provide your loved ones with a payout called death benefit after your demise. The death benefit can help the members of your family to maintain their current standard of living in the long run. Moreover, your family can decide whether they want to receive the payout monthly or annually based on their preference.

Ideally, term plans can be offered to every individual irrespective of smoking habits. However, the premium might vary based on your smoking habits. For instance, if you smoke more than 10 cigarettes every day, your premium amount can automatically increase. While you might pay  a relatively low price for smoking 2-5 cigarettes a day, your insurer can reject your proposal if you are in the habit of smoking 2-3 packets every single day.

When you a buy term insurance plan, you should disclose your smoking history to your insurance provider. On revealing your smoking habits, your insurer would then determine your term insurance premium. Your insurer can look at your tobacco consumption and your current health condition to determine the premium. Before you purchase a term plan, let’s understand the term insurance premium depending on your smoking habits:

As an individual with smoking habits, you might have to pay the premium amount ranging between 60%-80%, which is relatively higher than a non-smoker’s premium. Although the charged premium can be relatively high for you as a smoker, you can still be able to afford a term plan. Let’s understand the following ways mentioned below to look for a cost-effective plan with maximum term insurance benefits for smokers:

  • Consult a professional who can provide you with effective solutions.
  • Take quotation from companies which offer a term coverage to smokers.
  • Look for an insurance company that can lower your premium amount if you are trying to quit your smoking habits.

Note: If you are on the edge of quitting your smoking habits, you can ask your insurer to reconsider your term policy every year. Based on the last time you smoked, your insurance company would eventually decrease the rate of your premium.

To sum up, it can be a common myth that smokers can be denied the privilege of insurance coverage. However, this is not the case since a life insurance product can protect you from every eventuality of life. Since term insurance is a sub-subject of life insurance, you can avail a term coverage irrespective of your smoking habits. However, you should make it clear to your insurance provider about your lifestyle habits before purchasing a term policy. If your insurance company finds out the hidden details about your life, they can deny insurance coverage as well as reject your claims during an emergency.

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